Internal Accounting System
Internal control, as defined in accounting and auditing, is a process for assuring achievement of an organization’s objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. In a broad concept, internal control involves everything that controls risks to an organization. At the organizational level, internal control objectives relate to the reliability of financial reporting, timely feedback on the achievement of operational or strategic goals, and compliance with laws and regulations. At the specific transaction level, internal control refers to the actions taken to achieve a specific objective (e.g., how to ensure the organization’s payments to third parties are for valid services rendered.) Internal control procedures reduce process variation, leading to more predictable outcomes. Controls can be evaluated and improved to make a business operation run more effectively and efficiently. For example, automating controls that are manual in nature can save costs and improve transaction processing.
Ensure compliance with company policies and federal law.
Evaluate the performance of all personnel to promote efficient operations.
Ensure accurate and reliable operating data and accounting reports.
Ultimate responsibility for establishing and maintaining an effective internal control structure
Evaluate the effectiveness of the internal control structure and determine whether company policies and procedures are being followed
Review of accounting systems and internal controls
Regularly communicate updates and reminders of policies and procedures to staff through emails, staff meetings and other communication methods.
Periodically assess risks and the level of internal control required to protect the UN assets and records related to those risks.
Document the process for review, including when it will take place.